HomeMy WebLinkAboutProposalG R 0 U P
CITY OF JEFFERSONVILLE
EMPLOYEE HEALTH PLAN
HUMANA PROPOSAL
Presented by
CULPEPPER GROUP, Inc.
to
Board of Public Works
February 10, 2003
Proposed Effective Date
April 1, 2003
301WestMain Street
Muncie IN47305-1630
(765) 287-0128 ® (800) 865-8496
FAX(765) 287-0182
MAIN OFFICE
411 West Hwy. 131
Clarksville, IN 47129
(812) 945-0122 · (800) 292-4619
Fax (812) 945-0109
9000 Wessex PIace, Suite 203
Louisville. KY 40222
(502) 584-6741
CITYOF JEFFERSO~NVlLLE PROPOSALS: Plan Year April 1, 2003 thru Marcn ;~1, xuu4
Employee Health Plan
Third Party Admin~;.~atoi Stewart C. Miller Stewart C. Miller * Anthem ** Humana *** ~umana/FINAL RATES
Benefits Current Current Similar Comparable Comparable
Reinsurance Carrier: thru 3/31103 RenewaEULLICO Anthem Proposal FINAL RATES
PPg Network Sagamore Sagamore Anthem Humana Humans
Reinsurance Carrier:. ULLICO ULLICO Anthem Humana Humana
Specific Deductible $75,000 $75,000 $75,000 $75,000 ~75,000
Contract Basis/Specific PAtD PAID 15/12 15/12 15112
Contract Basis/Aggregate PAID PAID 12/12 15/12 15/12
FIXED COSTS ~EE SCM CURRENT SCM RENEWAL * Anthem ** Humana *** Humana/FiNAL
Specific Premium/Single 80 $19.52 $27.33 $34.72 $26.16 $25.60
Specific Prem./Family 16.~4 $48.80 $68.33 $34.72 $73.24 $71.63
250
Aggregate Prem./Single $3.57 $3.57 $6.50 $3.07 $3.22
~em./Fami_~l $9.99 $9.99 $6.50 $8.21 $8.62
Total Premium/Month $11,627.3(; $15,501.88 $10,305.00 $15,872.01 $15,639.52
Annual Stop/Loss Premium $139,527.60 $186,022.56 $123,660.00 $190,464.17 $187,674.24
Administrative Fees/EE 250 $23.01 $23.01 $52.93 $36.21 $36.21
Monthly Admin $5,752.50 $5,752.50 $13,232.50 $9,052,50. $9,052.50
Annual Administration Fees $69,030.00 $69,030.00 $'158,790.00 $108,630.00 $108,630.00
Fixed Casts per Employee 86 $46.10 $53191 $94.15 $65.44 $65.03
t6__.~4 $81.80 $101.33 $94.15 $117.66 $116.46
Monthly Fixed Costs 250 $17,379.80 $21,254.38 $23,537.50 $24,924.51 ..~ $24,692.02
ANNUAL FIXED COSTS $208,557.60 $255,052.56 $282,450.00 $299,094. t7 $296,304.24
;~lncrease/(Decrease) Over Current $46,494.96 $73,892.40 $90,536.57 $87,746.64
% Difference over Current I 22.3%' 35.4% 43.4% 42.1%
Increase/(Decrease) over Renewal SCM Renewal $27,397.44 $44,041.61 $41,251.68
CLAIMS COSTS ' S.MilledCurrent SCM Renewal * Anthem ~ Humana ~* Humana/FINAL .
Annual Expected Claims $1,740,984.77 $2,695,041.41 $2,162,280.00 $1,762,840.51 $1,8t5,718.85
Attachment Pt/Employee 86 $332.65 $514.94 $900.95 $336.83 $346.93
Attachment Pt/Family t64 $931.37 $1,441.76 $900.95 ' $943.06 $971.35
250 $181,352.58 $280,733.48 $225,237.50 $183,629.22 $189,137.38
Max Annual Claims Liability $2,176,230.96 $3,368,801.76 $2,702,850.00 $2,203,550.64 '~ $2,269,648.56
Incmase/(Decrease) overCurrent $~,192,570.80 $526,619.04 $27,319.68 $93,417.60
% Difference over Current I 54.8% 24.2% 1.3% 4.3%
Increase/(Decrease) overRenewal Renewal ($665,951.76) ($?,165,251.~2) (5~,099,15&20)
~ ~ ~ Humana/FINAL
TOTAL MAXIMUM COSTS Current thru 3/31103 SCM ReneWal * Anthem ** Humana
(Fixed Costs + Max. Claims) '~ $2,565,952.80
Maximum Liability/Year $2,384,788.56 $3,623,864.32 $2,985,300.00 $2,502,644.81
Increase/(Decrease) overCurrent $1,239,065.76 $600,511.44 $117,856.25 $181,164.24
4.9% 7.6%
% Difference over Current I 52.0% 25.2%
Other o~tOther Costs Run-out Aclmm;Admin; ~(Set~up) rea ~ ~See Attached: ~Est' $13,530.0(;
Informational Rates ' Current thru 3/31103 ~ Anthem** Humana*** Humana/FiNAL
Employee Only $378.75 $568.85 $474.40 $402.27 $411.96
Family $1,013.17 $1,543.09 $1,250.66 $1,060;72 $1,087.81
NOTES:
· Jan.1 Rates from Stewa~ ~. Milier/ULLICO will be reviewed and subject to updated claims information for renewal effective April 1, 2003:
** Anthem Rates were for Jan.1, 2003 effect. Updated information will be required for effective date of April 1,200~.
***Jan 1.Humana will set the attachment point at a later date for the effective date of April 1, 2003; subject to rarest experience and trend.
HUMANA/FINAL rates proposal dated February 5, 2003.
Totals are based on 9-Mo.Average Monthly Enrollment of Current Plan Year (86 Single; 164 Family). Totals may vary with fiuctaatio;n.~s
in enrollment. Average Monthly Enrollment of Prior Plan Year (ending Apr. 1, 2002) was 82 Single; 162 Family)
Prepared by Culpepper Group/ds/02/05/03 Page 1
CITY OF JEFFERSONVILLE
Pg. 2
Humana Proposal Includes
Rates include Cummulative Monthly Aggregate
Deductible and Co-Insurance Carryover Credit
Expenses applied to Deductible and Co-Insurance limits for months
of January thru March 2003 will be credited to calendar year maximums.
City of Jeffersonville
Other Costs to Implement Change of Health Plan Administratom
Pg. 3
Payment of Run-off Claims (Claims Incurred prior to and Paid after April 1. 2003)
by Stewart C. Miller & Co,. Inc.
Administrative Fees for 6-Months Claims Payments
Month 1 $3,125.00
Month 2 $2,500.00
Month 3 $2,000.00
Month 4 $1,600.00
Month 5 $1,280.00
Month 6 $1,025.00
Plus Cost of Claims
Total Claims Administration Fees
$11,530.00
Plus Cost of Claims
Humana Set-up (One-time)
Total Other Charges
$2~000
$13,530.00
Plus Cost of Claims
Humana Stop Loss Stipulations
Run-In Contract ~ 5/12: only 15% of the total paid claims for the quoted contract period can be run in
clain~s that apply to the aggregate (Claims for Jan-March 2003 limited to 15% of total 9aid claims
in contract period Apdl 1,2003 - Mamh 31. 2004).
Claims incurred prior to Jan.1, 2003 would not be applied to the aggregate and would be the
liability of the Plan Sponsor.
Prepared by Culpepper Gmupldsl02106103